A Herefordshire company has explained how it came to be on a Government naughty list of employers not paying staff the minimum wage.

Ross Labels, an outlet shopping mall off the A449 north of Ross-on-Wye, was among 202 employers listed last week as being “in clear breach of national minimum wage law”, based on investigations by HM Revenue and Customs between 2017 and 2019.

According to a statement from Labels’ directors: “Following a visit from HMRC back in June 2018 we were informed that as we had a uniform policy in place, we should have either provided any employees earning minimum wage with the uniform or paid them a uniform allowance.

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“As the uniform did not have the company name on it and was very general i.e. red/black or white trousers/skirt and a red/black or white top plain or patterned, we had no idea (like many other companies) that this clause even existed, let alone applied to us, as the clothes were suitable to be worn outside of work too.”

The Government announcement said the businesses named in the list “have since paid back what they owe to their staff and have also faced financial penalties”.

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Labels confirmed: “Although very disappointed with the outcome of the investigation, Ross Labels worked closely with HMRC and paid any colleagues, including those that had left the company, the uniform allowance.”

The company had a staff of 40 last year, according to its most recent accounts.

From April this year, the national minimum wage for staff 23 and over is £10.42, up 9.7 per cent on last year. For those aged 21 to 22, it is £10.18, and for 18 to 20-year-olds, £7.49.

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